Virgin Media O2 has reported a decline in sales and profits during the first quarter of 2026, as the telecoms group continues to lose fixed line and mobile customers in what it describes as a turbulent market.
Customer Losses and Financial Performance
The company experienced a net loss of 6,900 fixed line household customers in the first three months of the year. However, this represents a significant improvement of 38,000 compared to the same period last year, as the firm works to stabilise its customer base. In the mobile segment, Virgin Media O2 lost a net 61,500 consumer and business contracts, a narrowing from the 70,300 net loss recorded a year earlier.
Total underlying revenues, excluding the recent acquisition of Daisy, fell by 6.5% to £2.39 billion in the first quarter. Underlying earnings also dropped, declining by 3.4% to £901.7 million. The company expects both revenues and earnings to decrease by between 3% and 5% for the full year.
Investment and Strategic Initiatives
Despite the challenging conditions, Virgin Media O2 is investing heavily in its networks, with a planned expenditure of up to £2.2 billion over the course of 2026. In the first quarter alone, the firm invested more than £500 million. Key initiatives include the launch of O2 Satellite, a first in Europe, and the expansion of its 5G Standalone footprint to become the largest in the country. The company has also extended its fibre network to nearly nine million premises.
Lutz Schuler, chief executive of Virgin Media O2, commented: “This year is all about navigating a turbulent market landscape while investing, where the conditions are right, to maximise opportunities, future-proof our networks and lay the foundations to build long-term customer trust, profitability and cash generation.” He added that the company has made continued improvements in customer service and satisfaction, with Virgin Media customer complaints reducing by 42% year-on-year in the first quarter.
Business Operations
In May last year, Virgin Media O2 acquired Lancashire-based telecoms group Daisy to bolster its business-to-business operations. The acquisition is expected to contribute to the company's growth strategy in the B2B sector.
